Business Models for the Internet of Things: An In-Depth Categorization, Design and Innovation Tools, Challenges, and Solutions

The swift expansion of the Internet of Things (IoT) has brought about a fundamental transformation in the functioning of enterprises, leading to the emergence of groundbreaking offerings in various industries. As this disruptive technology persists in reshaping sectors, comprehending the essential business models responsible for its prosperity becomes ever more essential. This investigation primarily aims to provide a thorough categorization of IoT business models with eight classes of business models, encompassing paradigms such as Product-oriented, Service-centric, Outcome-based, Pay-per-usage, Data-driven, Subscription, Compliance, and Testbed. Subsequently, challenges inherent to IoT business models are analyzed, accompanied by corresponding solutions. The study further provides an extensive overview and comparison of primary business model innovation (BMI) tools tailored to the IoT landscape, comparing those tools and investigating the primary features and usability of each BMI tool.